When it comes to selling your business, you may be just as nervous as you were when you first started. This is completely understandable, as you’ve probably put your heart and soul into creating your company. But now it may be time to let it go, for whatever reason that may be. You could be ready for a personal change or your sales may have come to a plateau. It is important to recognize the signs that let you know it’s time to sell your business. After all, every business has a life cycle that will eventually come to an end. In order to set yourself up with the highest potential to sell, you’ll need to know exactly when to pull the trigger.

Here are three signs it’s time to consider selling your business:

1. You’re Personally Ready

If you find yourself losing passion and stamina when it comes to your business, you might want to reevaluate your plan. This could be a major sign to consider selling your business. You don’t want your company to end up becoming stagnant. You should always strive to grow and expand your business. But it requires a lot of energy and dedication to do that, which is hard to find if you’re burnt out. The fact of the matter is that it may be time to let someone else try.

Another reason it might be time to sell your business is if you’ve become bored and lack passion. Maybe you’ve outgrown your company. As a business owner you still have a job to do, and the fact of the matter is that people leave jobs for many different reasons. This can easily happen to a business owner if a better opportunity presents itself. You need to realistically prepare for unexpected life events to happen as well, which could end up throwing you for a loop and could lead to having to sell your business.

Only you will know when that time comes. Selling your business is one of two options and this way you get to continue to see it grow. Your other option would be ending your journey as an owner by liquidating your entire company.

Also: Ways Businesses Have Pivoted In Response to Coronavirus Shutdown

2. You’ve Stopped Growing

Another sign you’re ready to sell your business is a lack of growth across the board — especially in regard to cash flow. If your company seems to have hit a plateau in sales, you should start looking for buyers. If your company as a whole isn’t growing, you need to ask yourself why? Have you hit a wall? Has the economy changed? On the other hand, showing potential buyers that your business is sustainable on its own can be very attractive. By demonstrating constant demand for your goods or services you will eliminate any doubt a buyer has so it might be worth making some changes before moving into the acquisition phase. You need to be able to prove your business is worth investing in.

Counterpoint: How to Buy a Business 

3. Your Marketplace Has Changed

Another common sign you’re ready to sell your business is a major change in the marketplace. These changes can include, but are not limited to, a shift in the economy or the arrival of new competition. Changes happen constantly and your business has to be able to adapt to survive. No matter what is happening, it’s important you evaluate how your business is positioned among competitors in the marketplace. Maybe one competitor is dominating the market and they’re interested in eliminating smaller competitors like yourself. Instead of forming a rivalry you may not be able to win, that company could be the perfect buyer.

The Bottom Line

Only you know when the time is right to sell your business. You may come to the conclusion based on data, logic or just gut intuition. Once you know it’s time to sell, then you can move forward with the details confidently and position yourself for the best possible acquisition price.

Then you can prepare and focus on the next stage of your personal business journey. So, what’s next?

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